Employment: domestic demand boosts job creation

THE South African economy last month created about one quarter of the jobs created during the whole of 2011, thanks to an uptick in domestic demand and demand for South African metals and resources.

According to the latest Employment Index by employment services group Adcorp, the economy created 108 826 jobs in March 2012. This represents an annualised growth rate of 6,8% and builds a strong foundation for further employment growth.

Adcorp labour market analyst Loane Sharp told The Witness yesterday that he expects stronger employment growth on the back of the general economic recovery.

He expects all economic sectors to generate jobs in the months ahead.

The statistics on employment in March 2012 revealed that while growth was evident in all sectors, transport and logistics (15,2%), electricity and utilities (13,3%) and mining (12%) were the shining lights for South Africans seeking work.

The economy created 24 000 jobs in January and 80 000 jobs in February, according to Adcorp’s previous publications.

“The gains were mainly because of changes in the underlying economy.

“Domestic demand is driving growth in retail and manufacturing, as well as improvements in global metal demand.

“We expect strong growth in employment in April, and further growth to follow in the months to come.”

Sharp stressed that the South African economy is still about 280 000 jobs shy of the peak employment level recorded in 2009, prior to the country losing about one million jobs.

Sharp also pointed out that union membership has declined in South Africa in recent years.

“This is a social trend. Younger people in particular are more interested in personal performance rather than being part of collective wage agreements. It is a worldwide trend.”

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